Peet’s Coffee & Tea Announces Price Increase in Response to Rising Coffee Costs
September 27 2010 - 3:01PM
Business Wire
Peet’s Coffee & Tea (NASDAQ:PEET) today announced that in
response to the approximate 35% rise in green Arabica coffee prices
since the beginning of this year, it will raise the price on most
drinks by $0.10 and on beans sold in Peet’s stores an average of
8%, effective September 29, 2010.
“The cost of coffee has risen dramatically this year and is now
close to a 13-year high,” said Patrick O’Dea, president and CEO.
“We’ve been successful in offsetting a significant portion of these
costs, enabling us to delay action until now and keep the price
increase to a minimum. Despite the rising cost of coffee on the
world market, we remain committed to buying the finest-quality
beans, roasting them by hand in the world’s only LEED® Gold
Certified Roastery (Leadership in Energy and Environmental Design),
and delivering the freshest coffee to our customers.”
Peet’s also indicated it would selectively raise prices on
packaged beans in its other channels of distribution either
sometime during the company’s calendar fourth quarter or early next
year.
The company today also reaffirmed its fiscal 2010 GAAP diluted
earnings per share target of $1.22 to $1.25 and non-GAAP diluted
earnings per share target of $1.27 to $1.30. The non-GAAP earnings
per share target excludes $0.05 of costs related to the company’s
response to the subpoena it received in connection with the Federal
Trade Commission’s anti-trust review of the acquisition of Diedrich
Coffee by Green Mountain Coffee Roasters.
ABOUT PEET’S COFFEE & TEA
Peet’s Coffee & Tea, Inc. (PEET) is the premier specialty
coffee and tea company in the United States. The company was
founded in 1966 in Berkeley, Calif. by Alfred Peet. Peet was an
early tea authority who later became widely recognized as the
grandfather of specialty coffee in the U.S. Today, Peet’s Coffee
& Tea offers superior quality coffees and teas in multiple
forms, by sourcing the best quality coffee beans and tea leaves in
the world, adhering to strict high quality and taste standards, and
controlling product quality through its unique direct store
delivery selling and merchandising system. Peet’s is committed to
strategically growing its business through many channels while
maintaining the extraordinary quality of its coffees and teas. For
more information about Peet's Coffee & Tea, Inc., visit
www.peets.com.
This press release contains statements that are not based on
historical fact and are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements relating to
2010 forecasted earnings per diluted share. Forward-looking
statements are based on management’s beliefs, as well as
assumptions made by and information currently available to
management, including financial and operational information, the
company’s stock price volatility, and current competitive
conditions. As a result, these statements are subject to
various risks and uncertainties. The company’s actual results
could differ materially from those set forth in forward-looking
statements depending on a variety of factors including, but not
limited to, general economic conditions, including the recent
recession and its ongoing negative impact on consumer spending; the
outcome of the current wage and hour litigation involving the
company and potential future claims and litigation involving the
company, and the company’s ability to manage its expenses related
to such claims and litigation; the company’s ability to implement
its business strategy, attract and retain customers, and obtain and
expand its market presence in new geographic regions; the
availability and cost of high-quality Arabica coffee beans;
consumers’ tastes and preferences; and competition in its market as
well as other risk factors as described more fully in the company’s
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended January 3, 2010.
These factors may not be exhaustive. The company operates in a
continually changing business environment, and new risks emerge
from time to time. Any forward-looking statements speak only as of
the date of this press release.
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